Latest News:  
Beijing   Sunny/Cloudy    29 / 21 ℃  City Forecast

English>>China Business

Experts call for easing monetary policy

By Chen Jia  (China Daily)

15:01, September 05, 2012

The depressing picture painted by China's recent economic data has encouraged some economists to call for the use of monetary levers to increase bank credit and stabilize economic growth.

Some policy watchers expect a cut in the commercial banks' reserve requirement ratio by at least 50 basis points, as well as a reduction in benchmark interest rates of 0.25 percentage points by the end of this month.

Other economists close to the government suggested that monetary policy easing could be more selective, by lowering the lending rate, promoting market-based interest rate reform and injecting liquidity into the capital market.

In the second half of this year, China is expected to enter into a period of consecutive RRR cuts, said Ba Shusong, a senior economist with the Development Research Center of the State Council.

"It is likely that in the next one or two years the central bank will need to continually reduce the RRR to boost market liquidity, as yuan holdings for foreign exchange purchases may decrease thanks to gloomy exports amid weakening global economic growth," Ba said.

China started a cycle of RRR cuts last December, which has released about 400 billion yuan ($63 billion) into the capital market, after three years of monetary tightening.

【1】 【2】 【3】 【4】

News we recommend:
Amusement parks boost real estate market Survey shows SOE jobs are top choice CNOOC pushes ahead with Nexen acquisition
The Pain of a Pension Deficit Staying on Target More new grads opt for State firms
Treading Lightly for Fast Growth  Questions raised over stores' price war A fertile ground for overseas banks


Leave your comment0 comments

  1. Name


Selections for you

  1. Artillery troop unit in close-to-real-combat drill

  2. Russia celebrates anniversary of 1812 War

  3. Development of China's industrial economy in past decade

  4. Tai Chi: Techniques Still Change Lives

  5. Wedding photos of Lin Dan and Xie Xingfang

  6. Sexy photos of Zhang Xinyu

Most Popular


  1. A lesson learned about attractiveness
  2. Hainan's island idyll needs military guard
  3. Editorial: Non-manufacturing PMI
  4. Territorial clash makes Japan upgrade diplomacy
  5. HK national education controversy highly politicized
  6. Commentary: A special relationship indeed
  7. Chinese firms exposed to malicious IPR allegations
  8. Obama's 'forward agenda' hard to garner support
  9. Vigilant Internet watchdogs deter corrupt officials
  10. Accusations of China's arms exports unfair

What's happening in China

Strict health check-up for air stewardesses

  1. Shanghai to build $3.96 billion drain system
  2. Brawling Chinese force aircraft back to Zurich
  3. Petition calls for end to labor re-education
  4. Alleged GM experiment raises fear for parents
  5. Hospital staff accused of taking kickbacks

China Features

  1. PR veteran: To know China is to know the future
  2. Chinese books gains worldwide popularity
  3. 'City in wonderland’ appears after rain
  4. Chinese investment good for the host nations
  5. Unforgetable images of London Olympics

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture